Rio Tinto brinkmanship

Written By: - Date published: 8:38 am, July 2nd, 2015 - 58 comments
Categories: national, same old national - Tags: ,

tiwai

In August 2013 National announced the payment to Rio Tinto of $30 million to persuade the multi national corporation to continue with its contract to purchase electricity from Meridian Energy.  Many thought at the time that the payment was cynical manipulation by Rio Tinto of the Government at a time where the cancellation of the electricity supply contract would have played havoc with the Government’s asset sale programme.

The payment may have saved 800 jobs for a couple of years.  But Rio Tinto are now engaged in what looks like further brinkmanship and I expect the intention is to obtains more corporate welfare.

From Radio New Zealand yesterday:

New Zealand Aluminium Smelters had the option to end its power contract with Meridian Energy from today, but both sides have now agreed to delay any decision until 3 August.

As part of the $30 million government grant it received to stay open two years ago, New Zealand Aluminium Smelters was given until today to decide on its future – and that of the 800 people it employs.

Meridian’s chief executive Mark Binns said the smelter’s owner had been in talks with electricity companies, including Meridian, about its power needs, and wanted more time to consider its options.

“Although we are some way away from any sort of deal we think there are elements that are worthy of further discussion and we’d like to think it was possible that a deal could be put together inside that time frame if it was worthy of our investing more time in the whole matter.”

This post from two years ago by James Henderson makes a persuasive case for the Government to have said no.  If Tiwai’s power was no longer required then the most expensive electricity generation could be mothballed and prices would come down dramatically.  This may hurt shareholders of the power companies but that is the nature of a market.

And how is Tiwai Point performing lately?  Not bad according to Rio Tinto’s last annual report.

The Tiwai Point smelter in New Zealand, also part of the Pacific Aluminium cash-generating unit, is currently profitable as a result of high regional and product premiums and operational cost improvements; however, operational uncertainties indicate that the impairment losses previously recognised are yet to reverse.

Andrew Little’s comments on the issue is spot on.

It’s not good enough that after two years of negotiation between Meridian Energy and Rio Tinto there is now another delay until August.

The 800 workers at Tiwai deserve better as this whole mess has been created by the Government’s inept negotiations in 2013.

They used taxpayers money to bolster Meridian Energy which was about to be sold off as part of the Government’s asset sales programme.

We must never allow the events of 2013 to happen again. That brazen exercise in corporate welfare saw Rio Tinto get $30 million, its notice period halved and cheaper electricity.

Tiwai Point is just another example of the Government’s terrible negotiating skills. We have seen it again and again with SkyCity, Warner Brothers and the State Housing sell off.

Of course current circumstances are different and the Government is presumably less inclined to make any payment.  But you have to question the decision two years ago to pay the $30 million to Tiwai Point.  The extra couple of years bought appear to be well and truly gold (or is that aluminium) plated.

58 comments on “Rio Tinto brinkmanship ”

  1. BM 1

    Over the top stuff from Andrew Little again( or whoever write his press releases)

    He really needs to get that under control, makes him look like a raving mad man.

    As we all know, Andrew Little would have done exactly the same thing as National.

    The ex leader of the EMPU would not make a decision that would cause the loss of 800+ jobs.

    • Oh, bollocks. As the ex-head of the EPMU, Little actually knows how to negotiate. Clue, it’s not taking the other guy’s wishlist, saying yes and then adding a few more million on top as a sweetener.

      • BM 1.1.1

        Really?, so you’re saying that Andrew Little would have had no issue in closing Tiwai point and putting as Lanthanide said 1000’s out of work.

        I really really doubt that.

        Facts are Rio Tinto are a pack of arsholes that used a situation to fuck over NZ, they’re out the door next time, if they try that again.

        • mickysavage 1.1.1.1

          He would not have privatised Meridian which gave Rio Tinto the perfect leverage to demand the payment.

        • te reo putake 1.1.1.2

          Nope, not saying that at all, as I’m sure you know. Little would have negotiated and presumably done a deal. He wouldn’t have just rolled over, as the Key Government did for Warners, Rio Tinto and that bloke in Saudi Arabia who’s still laughing at how easy Key is to con.

          • BM 1.1.1.2.1

            Little would have negotiated and presumably done a deal

            What, like a 30 million government grant?

            • te reo putake 1.1.1.2.1.1

              Nope. I said he would have negotiated, not just rolled over. You do know what negotiation is, doncha?

              • Lanthanide

                TRP you’re assuming that the government did just “roll over” and hand over $30M without doing any negotiation at all.

                Do you have any actual evidence to support that this is what happened? Note: opinion is not evidence.

                • Do you have any evidence that it isn’t exactly what they wanted? No, no you don’t. Key, as usual, backed himself into a corner and had to fold because if he didn’t his pimping of our assets would have flopped. The guy cannot negotiate. It’s not in his nature or his skill set.

                  This Government is hooked on the philosophy of corporate welfare. If Kiwi citizens are in trouble … fuck ’em. If business needs a handout … let me get the taxpayer chequebook.

                  • Lanthanide

                    So no evidence, then, that National “just rolled over”. Just opinion.

                    • Huh? And your evidence to the contrary is what, exactly? Of course it’s an opinion, just as yours is. But mine is an opinion widely shared. In a nutshell, Key buggered it up because his privatisation program was at risk if he didn’t buy Rio Tinto off.

                      If Labour was in power at the time, Rio Tinto would not have had the leverage because there would not be any pending privatisations. So, Key had to roll over. He left himself no choice.

                    • Lanthanide

                      Yesterday you asked CV for a cite, which he couldn’t provide. Seems what’s good for the goose is good for the gander.

                      At least you’ve admitted it’s an opinion, though.

                      [I never claimed it as fact. It was always an opinion, as just about every post and comment on this site is. Take this as a warning. Any more failed smart arsery and you’re off. TRP]

                    • Brendon Harre

                      Lanthanide. If we remove the emotive language. The facts are there was an negotiation between Rio Tinto a highly profitable international company and the government. The conclusion of the negotiation was the government agreeing to subsidise Rio Tinto $30 million in return for Rio Tinto agreeing to keep Tiwai Point open for 2 years.

                      None of this is opinion -these are the facts.

                      This sort of subsidy of the private sector has been considered inappropriate since the Muldoon era.

                      You can dispute some of the colourful language, such as whether National “just rolled over”. But really the facts speak for themselves.

              • Old Mickey

                Many sorts of negotiation, and in this case Rio Tinto holds all the winning cards. Unless their demands are met, they will pack up and move.

                • BM

                  Exactly, it was all down side for National, they had nothing to negotiate with.

                  For me , it demonstrated what a bad faith business partner Rio Tinto is.

                  They couldn’t give a shit about NZ.

                  • Brendon Harre

                    Of course there is an upside for NZ. Rio Tinto actually has a weak hand, it was only the poor negotiating skills of John Key and Bill English that gave them a $30million subsidy from the taxpayer.

                    If Rio Tinto buggers off. NZ still retains the electricity and that electricity is put back on the market, lowering the price which would benefit lots of small consumers and businesses. These lower electricity prices for the whole country would easily create 1000s of jobs.

                    The government now and Andrew Little in the future if faced with a similar situation need to stand up to the fat cats demands and think about the little guy.

                    • Tracey

                      kind of like nationalisation but without an edict

                    • You_Fool

                      The main question for me is if Rio Tinto decide to bugger off, what happens to the smelter? Can it be brought for a reasonable price and then run (SOE just to annoy the RWNJ) which will recreate those jobs, and we have a profitable business still in NZ.

                      Of course the fact that that would never happen (because it is making money) means that Rio TInto will fold if heat is put back on them….

                  • Tracey

                    “For me , it demonstrated what a bad faith business partner Rio Tinto is.

                    They couldn’t give a shit about NZ.”

                    we agree, except for the business partner bit. They are not a business “partner” of NZ

                • True. Never take a blunt knife to a gun fight.

                • Draco T Bastard

                  I really wish they would. We’ve been subsidising Tiwai Point ever since somebody thought it up in the 1960s.

    • Tracey 1.2

      “is currently profitable”

      Do you know where that profit went BM?

  2. Lanthanide 2

    “The payment may have saved 800 jobs for a couple of years.”

    Apparently there are 3,500 jobs directly or indirectly dependent on the smelter staying open.

    “Of course current circumstances are different and the Government is presumably less inclined to make any payment. ”

    Key’s explicitly ruled out any further support.

    Share prices in the electricity companies have dropped by 10-20% over the last couple of months due to the uncertainty around the smelter.

    My suspicion is they’ll keep it open, exercise their option to keep buying 400 MW from Meridian and go to the market for the remaining 172 MW they need.

    • Tracey 2.1

      I heard Shadbolt use that figure too Lanth. Also factor in that Southland is dairy country and they are facing a downturn right now too…

    • dukeofurl 2.2

      That 3500 jobs is way too high.

      “Over my many years as head of the National Association of Manufacturers and later the Manufacturing Institute, we made much use of our study showing that the average manufacturing multiplier is 1.58.”
      http://www.huffingtonpost.com/jerry-jasinowski/jobs-multiplier_b_4002113.html

      This is for much more intense manufacturing than smelting. The raw materials arrive in bulk by sea, the production lines are not very labour intensive unlike a lot of manufacturing.

      But using the 1.58 factor we get 1260 indirect jobs when you have 800 work force.

      And it seems that the production has peaked and numbers could be lower than that now.

  3. repateet 3

    The previous chapter of the Rio Tinto brinkmanship was followed shortly after by the announcement of the international profit of Rio Tinto.

    How many billions was it?

    • NZSage 3.1

      +1000

      We really do need a like button on this blog.

    • Marvellous Bearded Git 3.2

      From the Rio Tinto accounts for 2014:

      “Achieved underlying earnings [profit] of $9.3 billion….”
      “These represent a total cash return to shareholders, in respect of 2014, of almost $6.0 billion…..”

      So the company felt able to give its shareholders US$6 billion, about NZ$9 billion.
      They really needed that $30m from Key/English.

  4. Marty 4

    Perhaps they should let it close and if indeed 3500 people lose their jobs then I suggest move them all to Wellington where they can be tasked with coming up with a solution to the state housing sell-off. Bet they can do better than offer them to an Australian charity.

  5. Marvellous Bearded Git 5

    $30 million is the tip of the iceberg.

    The real cave-in during the 2013 negotiations was over the price of power supplied to Rio Tinto. The previous deal over power prices finished in 2013. Meridian, in secret negotiations over a new long-term contract for power for Rio, according to media at the time, caved-in and gave the smelter cheaper prices for power than originally proposed in the new contract. This almost certainly cost much more than, and is additional to, the $30m headline figure, though the government will never release the figures hiding behind commercial sensitivity.

    Andrew Little and Mathew Hooton agree that National stuffed-up the negotiations with Rio. That is a pretty wide political spectrum of criticism suggesting this was a major cock-up by Key and English.

    • Brendon Harre 5.1

      As per my above argument if NZ allowed Rio Tinto to bugger off that electricity and lower price contracts would be available to ordinary consumers, including small businesses and would easily lead to thousands of extra jobs. It is not just the $30million of taxpayer subsidies at stake.

      Really like so many other issues in NZ this boils down to whether you support the big end or small end of town. It is the same thing with housing affordability, charter schools, social bonds to care for the mentally ill, milk prices, democracy for Canterbury, convention centres nationally and the rebuild in Christchurch, Sky City deals……

    • dukeofurl 5.2

      The NBR talks about a total concession of $1 bill over the life of the contract, including the $30 mill golden handshake and price reductions

  6. Paul Campbell 6

    I don’t think one really needs to question the $30m payment – there was an election coming it was pure electoral politics, putting the decision off untill there wasn’t an election looming was a no brainer for Key (of little brain).

    I can’t think of anything better for NZ than dumping lots of clean cheap carbon-free electricity on the national grid – electric cars will become more viable, cold houses will be able to be heated, new industries will spring up – if some of the people who bought shares in National’s sell off lknowing this was in the offing loose some money tough

  7. Nigel 7

    This winding down of economic activity worldwide just gets worse and worse. One persons “costs” are someones customers.

    We would all agree with this but don’t act like we understand.

    Governments can never balance a budget, only cut spending and so reduce their own tax take. We are seeing the result of this circular cutting of spending and reducing “costs”.

    Greece is a perfect example of killing their ability to earn a living through fiscal “responsibility”.
    We all know modern currency is debt and so it’s time we acted like we know it.
    I’m sure our government think they are doing the right thing with Rio Tinto, but the results just get worse.

  8. Stuart Munro 8

    World aluminium prices are recovering and are expected to rise until 2017 when new Indonesian smelting capacity comes on line. Rio Tinto don’t need a lolly this year.

  9. Tamati 9

    So when Labour calls for it, it’s “regional development” , but when National does it it’s “corporate welfare”.

    • dukeofurl 9.1

      Its not ‘development’ when they have been running for 30 years.

      And yes it is different when one party is all for ‘private enterprise’ except when it isnt.

      Cant wait for the year after next ( election year) when the dairy farmers will have to be bailed out.

      The Reserve Bank has started down that track by cutting interest rates which leads to fall in kiwi dollar and improves returns to farmers and lowers their interest rates.

      But it wont be enough as the 14,000 dairy farmers collectively owe about 20% of what Greece owes !

      • Tamati 9.1.1

        Both are advocating for handouts to businesses in regional New Zealand. This is no different from Labour calling for subsidies to the Hillside workshops in Dunedin.

        • McFlock 9.1.1.1

          Apart from the fact that hillside was government owned, and the options were to keep a good local facility working vs sending good money overseas in exchange for shonky asbestos-riddled shit.

          Fuck it – nationalise the smelter: best of both worlds, if it’s a going concern. If it’s not, then we might as well use the millions and scrap proceeds to subsidise a genuine long term asset for Southland.

  10. b waghorn 10

    In some ways is not the government s negotiating with a big company to secure 800 direct jobs plus another 1000or so flow on jobs a form of socialism . ?

    • Gosman 10.1

      Short answer yes.

    • dukeofurl 10.2

      Its never stopped them before, when its workers futures on the line.

      But this time its the big power companies who will have their share price decimated, thats the reason for the delay, to give a bit more cover for the sale of half shares in the big 3, some of which was stretched out over a year.

      • b waghorn 10.2.1

        Yes I bet the share holders shitting and I certainly don’t trust the nats motives but it would devastate another region if reo tinto goes .

  11. jaymam 11

    I understand that the taxpayer subsidy of Tiwai is so high that it would be cheaper to give all the workers $200,000 per year to sit at home and do nothing.
    That being the case, shut down Tiwai and string up some more wires and use the power for the rest of NZ, then no gas or coal need be burned to generate power. NZ would have 100% renewable power and we can tell the rest of the world that we have more than achieved our emissions target and why don’t they match us.
    We will all have cheaper power. Where’s the downside? Apart from those with shares in power companies, which isn’t me.

    • Oel 11.1

      I don’t think the effect on the companies would be even – some of the generators would suffer a lot and some a lot less, depending of their customer numbers, contracts etc. Some shareholders will benefit and some will suffer.

      For example and somewhat ironically, it would hit New Zealand wind farms very hard, because they purely rely on the wholesale market, and are presently incurring quite large maintenance costs for Te Rere Hau, in the order of say $50/MWh. However, you’d have to say that the immediate consequence would be a fast tracking of the decommissioning of the remaining Huntly steam turbine units. Contact would also be looking hard at one of its CCGTs, so possibly you would see the exit of up to 900MW of thermal generation from the market, which has got to be a good thing.

  12. Iron Sky 12

    Hummm, I hate to say it, but what about this:

    1.
    http://www.electric-vehiclenews.com
    Nissan plans a midcycle update as early as August that aims to deliver a big increase in the Leaf’s driving range.The improvements will come from increasing the battery capacity from the current 24-kilowatt-hour power pack to 30 kWh. The increase will boost range to 200 km (125 miles).

    +

    1.
    Nissan plans a midcycle update as early as August that aims to deliver a big increase in the Leaf’s driving range.The improvements will come from increasing the battery capacity from the current 24-kilowatt-hour power pack to 30 kWh. The increase will boost range to 200 km (125 miles).

    = 3

    RIO …. see the connection perchance? could be wrong……..

  13. Iron Sky 13

    3 = While details are yet scarce, yesterday Phinergy CEO and Founder, Aviv Tzidon confirmed talks with Renault-Nissan are tentatively set for a proposed series production electric car due in 2017 using its range-extending aluminum-air battery.

    YUP ALUMINIUMMMMMMMMMM

    http://www.hybridcars.com/renault-nissan-to-use-phinergys-aluminum-air-battery/

    NZ has lots of electricity and apparently an aluminium smelter to die for.

  14. RedBaronCV 14

    And if Rio Tinto want another subsidy then obviously the smelter is not profitable so they should be pleased to sell it for whatever they can get. A bit of crowd sourcing should get the ten bucks together. What they won’t sell for that – must be making money then.

    • Stuart Munro 14.1

      It is a good idea – but running an aluminium smelter is not quite a walk in the park, and as the gulf finishes commissioning and Indonesian smelters come online maintaining profitability will become difficult. Especially since large companies like Rio Tinto will probably manipulate alumina prices to the point that Tiwai is marginal.

      Our local advantage is not energy price but if as a country we use the smelter to smooth generation capacity – and develop a range of finished aluminium industries. The Gnats are basically peasants – don’t understand that kind of thing at all. And Labour… are no longer the repository of metallurgical knowledge they might once have been.

      The Greens might recognise things like the parallelism of anode curing with carbon fibre manufacture – but the carbon footprint of any aluminium smelter might deter them from developing or optimising the kind of light industry sector that should form around such a key resource.

  15. philj 15

    Is this what is meant by a PPP? The Government helps out struggling multi nationals? Half price electricity sounds like a great deal for rich and poor throughout the land. Pity the investors who bought in. lol

  16. Oel 16

    The whole market structure is ridiculous, and prone to distortions. This is a prime example – the market is floundering around trying to find a cheap way of supplying 172MW. Meanwhile Contact Energy is considering what to do with two of the most efficient gas turbines in the country (otahuhu b and tcc). Ccgt of such ilk typically have a minimum load of between 160 – 200MW. The old nzed wouldn’t have needed years of negotiations to join the dots about what the best solution is here …

  17. Andrew Wallace 17

    Does anyone have an accurate figure on the price per kilowatt/hour Rio Tinto has been paying Meridian since the renegotiation in 2013?

    • Oel 17.1

      I don’t think the figure has ever been published officially, but I guess given that the negotiations are proving to be difficult to secure the additional 172MW with Genesis / Contact / MRP then it can be inferred that the cost is probably close to the cost to run the power stations that would be used to supply the additional power. So I would guess that the cost is approximately the short run marginal cost of a CCGT, which is around $80/MWh or 8c/kWh, plus or minus say 1c/kWh depending on what price they get the gas for etc etc. Not bad eh? Would be nice to get the power for my house at that rate 🙂

      I guess there is also the benefit for the generation companies of effectively removing 172MW generation from the wholesale market, as it would be contracted to Rio Tinto, pushing the price up.

  18. Smilin 18

    IF its not profitable to produce aluminium let it fail Key shut down Hillside what’s the problem with pullin the pin on Rio Tinto
    Oh thats right they’ve got us over a multinational barrel of imperial graft and corruption and probably donate significantly to the national party apart from being probable shareholders in Meridian any other thoughts about this piece of scumbag protectionism ?
    We could do with having the power in the grid anyway to balance what AK sucks

  19. lulu 19

    None of the commentators connect the delay of the announcement with the “possibility of transmission pricing changes which could save Tiwai about $50m a year” (refer Stuff). While it is not a done deal, if the Electricity Authority land on the currently proposed new transmission pricing methodology Rio wouldn’t get a single payment of $50m they would receive an annual saving of $50m. The new proposed methodology was announced June 16, just 2 weeks before the delay on the outcome of negotiations was announced. No surprise that they needed a bit more time to decide whether this possible windfall is bankable.

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  • Hipkins fires up in leaders’ debate, but has the curtain already fallen on the Labour-led coalitio...
    Labour’s  Chris Hipkins came out firing, in the  leaders’ debate  on Newshub’s evening programme, and most of  the pundits  rated  him the winner against National’s  Christopher Luxon. But will this make any difference when New  Zealanders  start casting their ballots? The problem  for  Hipkins is  that  voters are  all too ...
    Point of OrderBy tutere44
    2 days ago
  • Govt is energising housing projects with solar power – and fuelling the public’s concept of a di...
    Buzz from the Beehive  Not long after Point of Order published data which show the substantial number of New Zealanders (77%) who believe NZ is becoming more divided, government ministers were braying about a programme which distributes some money to “the public” and some to “Maori”. The ministers were dishing ...
    Point of OrderBy Bob Edlin
    2 days ago
  • MIKE GRIMSHAW: Election 2023 – a totemic & charisma failure?
    The D&W analysis Michael Grimshaw writes –  Given the apathy, disengagement, disillusionment, and all-round ennui of this year’s general election, it was considered time to bring in those noted political operatives and spin doctors D&W, the long-established consultancy firm run by Emile Durkheim and Max Weber. Known for ...
    Point of OrderBy poonzteam5443
    2 days ago
  • FROM BFD: Will Winston be the spectre we think?
    Kissy kissy. Cartoon credit BoomSlang. The BFD. JC writes-  Allow me to preface this contribution with the following statement: If I were asked to express a preference between a National/ACT coalition or a National/ACT/NZF coalition then it would be the former. This week Luxon declared his position, ...
    Point of OrderBy poonzteam5443
    2 days ago
  • California’s climate disclosure bill could have a huge impact across the U.S.
    This re-post from Yale Climate Connections by Andy Furillo was originally published by Capital & Main and is part of Covering Climate Now, a global journalism collaboration strengthening coverage of the climate story. The California Legislature took a step last week that has the potential to accelerate the fight against climate ...
    2 days ago
  • Untangling South East Queensland’s Public Transport
    This is a cross post Adventures in Transitland by Darren Davis. I recently visited Brisbane and South East Queensland and came away both impressed while also pondering some key changes to make public transport even better in the region. Here goes with my take on things. A bit of ...
    Greater AucklandBy Guest Post
    2 days ago
  • Try A Little Kindness.
    My daughter arrived home from the supermarket yesterday and she seemed a bit worried about something. It turned out she wanted to know if someone could get her bank number from a receipt.We wound the story back.She was in the store and there was a man there who was distressed, ...
    Nick’s KōreroBy Nick Rockel
    2 days ago
  • What makes NZFirst tick
    New Zealand’s longest-running political roadshow rolled into Opotiki yesterday, with New Zealand First leader Winston Peters knowing another poll last night showed he would make it back to Parliament and National would need him and his party if they wanted to form a government. The Newshub Reid Research poll ...
    PolitikBy Richard Harman
    2 days ago
  • September AMA
    Hi,As September draws to a close — I feel it’s probably time to do an Ask Me Anything. You know how it goes: If you have any burning questions, fire away in the comments and I will do my best to answer. You might have questions about Webworm, or podcast ...
    David FarrierBy David Farrier
    3 days ago
  • Bludgers lying in the scratcher making fools of us all
    The mediocrity who stands to be a Prime Minister has a litany.He uses it a bit like a Koru Lounge card. He will brandish it to say: these people are eligible. And more than that, too: These people are deserving. They have earned this policy.They have a right to this policy. What ...
    More Than A FeildingBy David Slack
    3 days ago
  • More “partnerships” (by the look of it) and redress of over $30 million in Treaty settlement wit...
    Buzz from the Beehive Point of Order has waited until now – 3.45pm – for today’s officially posted government announcements.  There have been none. The only addition to the news on the Beehive’s website was posted later yesterday, after we had published our September 26 Buzz report. It came from ...
    Point of OrderBy Bob Edlin
    3 days ago
  • ALEX HOLLAND: Labour’s spending
    Alex Holland writes –  In 2017 when Labour came to power, crown spending was $76 billion per year. Now in 2023 it is $139 billion per year, which equates to a $63 billion annual increase (over $1 billion extra spend every week!) In 2017, New Zealand’s government debt ...
    Point of OrderBy poonzteam5443
    3 days ago
  • If not now, then when?
    Labour released its fiscal plan today, promising the same old, same old: "responsibility", balanced books, and of course no new taxes: "Labour will maintain income tax settings to provide consistency and certainty in these volatile times. Now is not the time for additional taxes or to promise billions of ...
    No Right TurnBy Idiot/Savant
    3 days ago
  • THE FACTS:  77% of Kiwis believe NZ is becoming more divided
    The Facts has posted –        KEY INSIGHTSOf New Zealander’s polled: Social unity/division 77%believe NZ is becoming more divided (42% ‘much more’ + 35% ‘a little more’) 3%believe NZ is becoming less divided (1% ‘much less’ + 2% ‘a little less’) ...
    Point of OrderBy poonzteam5443
    3 days ago
  • Gordon Campbell on the cynical brutality of the centre-right’s welfare policies
    The centre-right’s enthusiasm for forcing people off the benefit and into paid work is matched only by the enthusiasm (shared by Treasury and the Reserve Bank) for throwing people out of paid work to curb inflation, and achieve the optimal balance of workers to job seekers deemed to be desirable ...
    3 days ago
  • Wednesday’s Chorus: Arthur Grimes on why building many, many more social houses is so critical
    New research shows that tenants in social housing - such as these Wellington apartments - are just as happy as home owners and much happier than private tenants. Photo: Lynn Grieveson / The KākāTL;DR: The election campaign took an ugly turn yesterday, and in completely the wrong direction. All three ...
    The KakaBy Bernard Hickey
    3 days ago
  • Old habits
    Media awareness about global warming and climate change has grown fairly steadily since 2004. My impression is that journalists today tend to possess a higher climate literacy than before. This increasing awareness and improved knowledge is encouraging, but there are also some common interpretations which could be more nuanced. ...
    Real ClimateBy rasmus
    3 days ago
  • Bennie Bashing.
    If there’s one thing the mob loves more than keeping Māori in their place, more than getting tough on the gangs, maybe even more than tax cuts. It’s a good old round of beneficiary bashing.Are those meanies in the ACT party stealing your votes because they think David Seymour is ...
    Nick’s KōreroBy Nick Rockel
    3 days ago
  • The kindest cuts
    Labour kicks off the fiscal credibility battle today with the release of its fiscal plan. National is expected to follow, possibly as soon as Thursday, with its own plan, which may (or may not) address the large hole that the problems with its foreign buyers’ ban might open up. ...
    PolitikBy Richard Harman
    3 days ago
  • Green right turn in Britain? Well, a start
    While it may be unlikely to register in New Zealand’s general election, Britain’s PM Rishi Sunak has done something which might just be important in the long run. He’s announced a far-reaching change in his Conservative government’s approach to environmental, and particularly net zero, policy. The starting point – ...
    Point of OrderBy xtrdnry
    4 days ago
  • At a glance – How do human CO2 emissions compare to natural CO2 emissions?
    On February 14, 2023 we announced our Rebuttal Update Project. This included an ask for feedback about the added "At a glance" section in the updated basic rebuttal versions. This weekly blog post series highlights this new section of one of the updated basic rebuttal versions and serves as a ...
    4 days ago
  • How could this happen?
    Canada is in uproar after the exposure that its parliament on September 22 provided a standing ovation to a Nazi veteran who had been invited into the chamber to participate in the parliamentary welcome to Ukrainian President Zelensky. Yaroslav Hunka, 98, a Ukrainian man who volunteered for service in ...
    4 days ago
  • Always Be Campaigning
    The big screen is a great place to lay out the ways of the salesman. He comes ready-made for Panto, ripe for lampooning.This is not to disparage that life. I have known many good people of that kind. But there is a type, brazen as all get out. The camera ...
    More Than A FeildingBy David Slack
    4 days ago
  • STEPHEN FRANKS: Press seek to publicly shame doctor – we must push back
    The following is a message sent yesterday from lawyer Stephen Franks on behalf of the Free Speech Union. I don’t like to interrupt first thing Monday morning, but we’ve just become aware of a case where we think immediate and overwhelming attention could help turn the tide. It involves someone ...
    Point of OrderBy poonzteam5443
    4 days ago
  • Competing on cruelty
    The right-wing message calendar is clearly reading "cruelty" today, because both National and NZ First have released beneficiary-bashing policies. National is promising a "traffic light" system to police and kick beneficiaries, which will no doubt be accompanied by arbitrary internal targets to classify people as "orange" or "red" to keep ...
    No Right TurnBy Idiot/Savant
    4 days ago
  • Further funding for Pharmac (forgotten in the Budget?) looks like a $1bn appeal from a PM in need of...
    Buzz from the Beehive One Labour plan  – for 3000 more public homes by 2025 – is the most recent to be posted on the government’s official website. Another – a prime ministerial promise of more funding for Pharmac – has been released as a Labour Party press statement. Who ...
    Point of OrderBy Bob Edlin
    4 days ago
  • Bryce Edwards: The Vested interests shaping National Party policies
    As the National Party gets closer to government, lobbyists and business interests will be lining up for influence and to get policies adopted. It’s therefore in the public interest to have much more scrutiny and transparency about potential conflicts of interests that might arise. One of the key individuals of ...
    Democracy ProjectBy bryce.edwards
    4 days ago
  • Labour may be on way out of power and NZ First back in – but will Peters go into coalition with Na...
    Voters  are deserting Labour in droves, despite Chris  Hipkins’  valiant  rearguard  action.  So  where  are they  heading?  Clearly  not all of them are going to vote National, which concedes that  the  outcome  will be “close”. To the Right of National, the ACT party just a  few weeks  ago  was ...
    Point of OrderBy tutere44
    4 days ago
  • GRAHAM ADAMS: Will the racists please stand up?
    Accusations of racism by journalists and MPs are being called out. Graham Adams writes –    With the election less than three weeks away, what co-governance means in practice — including in water management, education, planning law and local government — remains largely obscure. Which is hardly ...
    Point of OrderBy poonzteam5443
    4 days ago
  • Gordon Campbell on whether Winston Peters can be a moderating influence
    As the centre-right has (finally!) been subjected to media interrogation, the polls are indicating that some voters may be starting to have second thoughts about the wisdom of giving National and ACT the power to govern alone. That’s why yesterday’s Newshub/Reid Research poll had the National/ACT combo dropping to 60 ...
    4 days ago
  • Tuesday’s Chorus: RBNZ set to rain on National's victory parade
    ANZ has increased its forecast for house inflation later this year on signs of growing momentum in the market ahead of the election. Photo: Lynn Grieveson / The KākāTL;DR: National has campaigned against the Labour Government’s record on inflation and mortgage rates, but there’s now a growing chance the Reserve ...
    The KakaBy Bernard Hickey
    4 days ago
  • After a Pittsburgh coal processing plant closed, ER visits plummeted
    This is a re-post from Yale Climate Connections by Katie Myers. This story was originally published by Grist and is part of Covering Climate Now, a global journalism collaboration strengthening coverage of the climate story. Pittsburgh, in its founding, was blessed and cursed with two abundant natural resources: free-flowing rivers and a nearby coal seam. ...
    4 days ago
  • September-23 AT Board Meeting
    Today the AT board meet again and once again I’ve taken a look at what’s on the agenda to find the most interesting items. Closed Agenda Interestingly when I first looked at the agendas this paper was there but at the time of writing this post it had been ...
    4 days ago
  • Electorate Watch: West Coast-Tasman
    Continuing my series on interesting electorates, today it’s West Coast-Tasman.A long thin electorate running down the northern half of the west coast of the South Island. Think sand flies, beautiful landscapes, lots of rain, Pike River, alternative lifestylers, whitebaiting, and the spiritual home of the Labour Party. A brief word ...
    Nick’s KōreroBy Nick Rockel
    4 days ago
  • Big money brings Winston back
    National leader Christopher Luxon yesterday morning conceded it and last night’s Newshub poll confirmed it; Winston Peters and NZ First are not only back but highly likely to be part of the next government. It is a remarkable comeback for a party that was tossed out of Parliament in ...
    PolitikBy Richard Harman
    4 days ago
  • 20 days until Election Day, 7 until early voting begins… but what changes will we really see here?
    As this blogger, alongside many others, has already posited in another forum: we all know the National Party’s “budget” (meaning this concept of even adding up numbers properly is doing a lot of heavy, heavy lifting right now) is utter and complete bunk (read hung, drawn and quartered and ...
    exhALANtBy exhalantblog
    5 days ago
  • A night out
    Everyone was asking, Are you nervous? and my response was various forms of God, yes.I've written more speeches than I can count; not much surprises me when the speaker gets to their feet and the room goes quiet.But a play? Never.YOU CAME! THANK YOU! Read more ...
    More Than A FeildingBy David Slack
    5 days ago
  • A pallid shade of Green III
    Clearly Labour's focus groups are telling it that it needs to pay more attention to climate change - because hot on the heels of their weaksauce energy efficiency pilot programme and not-great-but-better-than-nothing solar grants, they've released a full climate manifesto. Unfortunately, the core policies in it - a second Emissions ...
    No Right TurnBy Idiot/Savant
    5 days ago
  • A coalition of racism, cruelty, and chaos
    Today's big political news is that after months of wibbling, National's Chris Luxon has finally confirmed that he is willing to work with Winston Peters to become Prime Minister. Which is expected, but I guess it tells us something about which way the polls are going. Which raises the question: ...
    No Right TurnBy Idiot/Savant
    5 days ago
  • More migrant workers should help generate the tax income needed to provide benefits for job seekers
    Buzz from the Beehive Under something described as a “rebalance” of its immigration rules, the Government has adopted four of five recommendations made in an independent review released in July, The fifth, which called on the government to specify criteria for out-of-hours compliance visits similar to those used during ...
    Point of OrderBy Bob Edlin
    5 days ago
  • Letter To Luxon.
    Some of you might know Gerard Otto (G), and his G News platform. This morning he wrote a letter to Christopher Luxon which I particularly enjoyed, and with his agreement I’m sharing it with you in this guest newsletter.If you’d like to make a contribution to support Gerard’s work you ...
    Nick’s KōreroBy Nick Rockel
    5 days ago
  • LINDSAY MITCHELL: Alarming trend in benefit numbers
    Lindsay Mitchell writes –  While there will not be another quarterly release of benefit numbers prior to the election, limited weekly reporting continues and is showing an alarming trend. Because there is a seasonal component to benefit number fluctuations it is crucial to compare like with like. In ...
    Point of OrderBy poonzteam5443
    5 days ago
  • BRIAN EASTON: Has there been external structural change?
    A close analysis of the Treasury assessment of the Medium Term in its PREFU 2023 suggests the economy may be entering a new phase.   Brian Easton writes –  Last week I explained that the forecasts in the just published Treasury Pre-election Economic and Fiscal Update (PREFU 2023) was ...
    Point of OrderBy poonzteam5443
    5 days ago
  • CRL Progress – Sep-23
    It’s been a while since we looked at the latest with the City Rail Link and there’s been some fantastic milestones recently. To start with, and most recently, CRL have released an awesome video showing a full fly-through of one of the tunnels. Come fly with us! You asked for ...
    5 days ago
  • Monday’s Chorus: Not building nearly enough
    We are heading into another period of fast population growth without matching increased home building or infrastructure investment.Photo: Lynn Grieveson / The KākāTL;DR: Labour and National detailed their house building and migration approaches over the weekend, with both pledging fast population growth policies without enough house building or infrastructure investment ...
    The KakaBy Bernard Hickey
    5 days ago
  • Game on; Hipkins comes out punching
    Labour leader Chris Hipkins yesterday took the gloves off and laid into National and its leader Christopher Luxon. For many in Labour – and particularly for some at the top of the caucus and the party — it would not have been a moment too soon. POLITIK is aware ...
    PolitikBy Richard Harman
    5 days ago
  • Tax Cut Austerity Blues.
    The leaders have had their go, they’ve told us the “what?” and the “why?” of their promises. Now it’s the turn of the would be Finance Ministers to tell us the “how?”, the “how much?”, and the “when?”A chance for those competing for the second most powerful job in the ...
    Nick’s KōreroBy Nick Rockel
    6 days ago
  • MIKE GRIMSHAW:  It’s the economy – and the spirit – Stupid…
    Mike Grimshaw writes – Over the past 30-odd years it’s become almost an orthodoxy to blame or invoke neoliberalism for the failures of New Zealand society. On the left the usual response goes something like, neoliberalism is the cause of everything that’s gone wrong and the answer ...
    Point of OrderBy poonzteam5443
    6 days ago
  • 2023 SkS Weekly Climate Change & Global Warming News Roundup #38
    A chronological listing of news and opinion articles posted on the Skeptical Science Facebook Page during the past week: Sun, Sep 17, 2023 thru Sat, Sep 23, 2023. Story of the Week  Opinion: Let’s free ourselves from the story of economic growth A relentless focus on economic growth has ushered in ...
    6 days ago
  • The End Of The World.
    Have you been looking out of your window for signs of the apocalypse? Don’t worry, you haven’t been door knocked by a representative of the Brian Tamaki party. They’re probably a bit busy this morning spruiking salvation, or getting ready to march on our parliament, which is closed. No, I’ve ...
    Nick’s KōreroBy Nick Rockel
    1 week ago
  • Climate Town: The Brainwashing Of America's Children
    Climate Town is the YouTube channel of Rollie Williams and a ragtag team of climate communicators, creatives and comedians. They examine climate change in a way that doesn’t make you want to eat a cyanide pill. Get informed about the climate crisis before the weather does it for you. The latest ...
    1 week ago
  • Has There Been External Structural Change?
    A close analysis of the Treasury assessment of the Medium Term in its PREFU 2023 suggests the economy may be entering a new phase. Last week I explained that the forecasts in the just published Treasury Pre-election Economic and Fiscal Update (PREFU 2023) was similar to the May Budget BEFU, ...
    PunditBy Brian Easton
    1 week ago

  • New community-level energy projects to support more than 800 Māori households
    Seven more innovative community-scale energy projects will receive government funding through the Māori and Public Housing Renewable Energy Fund to bring more affordable, locally generated clean energy to more than 800 Māori households, Energy and Resources Minister Dr Megan Woods says. “We’ve already funded 42 small-scale clean energy projects that ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Huge boost to Te Tai Tokerau flood resilience
    The Government has approved new funding that will boost resilience and greatly reduce the risk of major flood damage across Te Tai Tokerau. Significant weather events this year caused severe flooding and damage across the region. The $8.9m will be used to provide some of the smaller communities and maraes ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Napier’s largest public housing development comes with solar
    The largest public housing development in Napier for many years has been recently completed and has the added benefit of innovative solar technology, thanks to Government programmes, says Housing Minister Dr Megan Woods. The 24 warm, dry homes are in Seddon Crescent, Marewa and Megan Woods says the whanau living ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Te Whānau a Apanui and the Crown initial Deed of Settlement I Kua waitohua e Te Whānau a Apanui me...
    Māori: Kua waitohua e Te Whānau a Apanui me te Karauna te Whakaaetanga Whakataunga Kua waitohua e Te Whānau a Apanui me te Karauna i tētahi Whakaaetanga Whakataunga hei whakamihi i ō rātou tāhuhu kerēme Tiriti o Waitangi. E tekau mā rua ngā hapū o roto mai o Te Whānau ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Plan for 3,000 more public homes by 2025 – regions set to benefit
    Regions around the country will get significant boosts of public housing in the next two years, as outlined in the latest public housing plan update, released by the Housing Minister, Dr Megan Woods. “We’re delivering the most public homes each year since the Nash government of the 1950s with one ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Immigration settings updates
    Judicial warrant process for out-of-hours compliance visits 2023/24 Recognised Seasonal Employer cap increased by 500 Additional roles for Construction and Infrastructure Sector Agreement More roles added to Green List Three-month extension for onshore Recovery Visa holders The Government has confirmed a number of updates to immigration settings as part of ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Poroporoaki: Tā Patrick (Patu) Wahanga Hohepa
    Tangi ngunguru ana ngā tai ki te wahapū o Hokianga Whakapau Karakia. Tārehu ana ngā pae maunga ki Te Puna o te Ao Marama. Korihi tangi ana ngā manu, kua hinga he kauri nui ki te Wao Nui o Tāne. He Toa. He Pou. He Ahorangi. E papaki tū ana ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Renewable energy fund to support community resilience
    40 solar energy systems on community buildings in regions affected by Cyclone Gabrielle and other severe weather events Virtual capability-building hub to support community organisations get projects off the ground Boost for community-level renewable energy projects across the country At least 40 community buildings used to support the emergency response ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • COVID-19 funding returned to Government
    The lifting of COVID-19 isolation and mask mandates in August has resulted in a return of almost $50m in savings and recovered contingencies, Minister of Health Dr Ayesha Verrall announced today. Following the revocation of mandates and isolation, specialised COVID-19 telehealth and alternative isolation accommodation are among the operational elements ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Appointment of District Court Judge
    Susie Houghton of Auckland has been appointed as a new District Court Judge, to serve on the Family Court, Attorney-General David Parker said today.  Judge Houghton has acted as a lawyer for child for more than 20 years. She has acted on matters relating to the Hague Convention, an international ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government invests further in Central Hawke’s Bay resilience
    The Government has today confirmed $2.5 million to fund a replace and upgrade a stopbank to protect the Waipawa Drinking Water Treatment Plant. “As a result of Cyclone Gabrielle, the original stopbank protecting the Waipawa Drinking Water Treatment Plant was destroyed. The plant was operational within 6 weeks of the ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Govt boost for Hawke’s Bay cyclone waste clean-up
    Another $2.1 million to boost capacity to deal with waste left in Cyclone Gabrielle’s wake. Funds for Hastings District Council, Phoenix Contracting and Hog Fuel NZ to increase local waste-processing infrastructure. The Government is beefing up Hawke’s Bay’s Cyclone Gabrielle clean-up capacity with more support dealing with the massive amount ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Taupō Supercars revs up with Government support
    The future of Supercars events in New Zealand has been secured with new Government support. The Government is getting engines started through the Major Events Fund, a special fund to support high profile events in New Zealand that provide long-term economic, social and cultural benefits. “The Repco Supercars Championship is ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • There is no recession in NZ, economy grows nearly 1 percent in June quarter
    The economy has turned a corner with confirmation today New Zealand never was in recession and stronger than expected growth in the June quarter, Finance Minister Grant Robertson said. “The New Zealand economy is doing better than expected,” Grant Robertson said. “It’s continuing to grow, with the latest figures showing ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Highest legal protection for New Zealand’s largest freshwater springs
    The Government has accepted the Environment Court’s recommendation to give special legal protection to New Zealand’s largest freshwater springs, Te Waikoropupū Springs (also known as Pupū Springs), Environment Minister David Parker announced today.   “Te Waikoropupū Springs, near Takaka in Golden Bay, have the second clearest water in New Zealand after ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • More support for victims of migrant exploitation
    Temporary package of funding for accommodation and essential living support for victims of migrant exploitation Exploited migrant workers able to apply for a further Migrant Exploitation Protection Visa (MEPV), giving people more time to find a job Free job search assistance to get people back into work Use of 90-day ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Strong export boost as NZ economy turns corner
    An export boost is supporting New Zealand’s economy to grow, adding to signs that the economy has turned a corner and is on a stronger footing as we rebuild from Cyclone Gabrielle and lock in the benefits of multiple new trade deals, Finance Minister Grant Robertson says. “The economy is ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Funding approved for flood resilience work in Te Karaka
    The Government has approved $15 million to raise about 200 homes at risk of future flooding. More than half of this is expected to be spent in the Tairāwhiti settlement of Te Karaka, lifting about 100 homes there. “Te Karaka was badly hit during Cyclone Gabrielle when the Waipāoa River ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Further business support for cyclone-affected regions
    The Government is helping businesses recover from Cyclone Gabrielle and attract more people back into their regions. “Cyclone Gabrielle has caused considerable damage across North Island regions with impacts continuing to be felt by businesses and communities,” Economic Development Minister Barbara Edmonds said. “Building on our earlier business support, this ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New maintenance facility at Burnham Military Camp underway
    Defence Minister Andrew Little has turned the first sod to start construction of a new Maintenance Support Facility (MSF) at Burnham Military Camp today. “This new state-of-art facility replaces Second World War-era buildings and will enable our Defence Force to better maintain and repair equipment,” Andrew Little said. “This Government ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Foreign Minister to attend United Nations General Assembly
    Foreign Minister Nanaia Mahuta will represent New Zealand at the 78th Session of the United Nations General Assembly (UNGA) in New York this week, before visiting Washington DC for further Pacific focussed meetings. Nanaia Mahuta will be in New York from Wednesday 20 September, and will participate in UNGA leaders ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Midwives’ pay equity offer reached
    Around 1,700 Te Whatu Ora employed midwives and maternity care assistants will soon vote on a proposed pay equity settlement agreed by Te Whatu Ora, the Midwifery Employee Representation and Advisory Service (MERAS) and New Zealand Nurses Association (NZNO), Minister of Health Dr Ayesha Verrall announced today. “Addressing historical pay ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New Zealand provides support to Morocco
    Aotearoa New Zealand will provide humanitarian support to those affected by last week’s earthquake in Morocco, Foreign Minister Nanaia Mahuta announced today. “We are making a contribution of $1 million to the International Federation of Red Cross and Red Crescent Societies (IFRC) to help meet humanitarian needs,” Nanaia Mahuta said. ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Government invests in West Coast’s roading resilience
    The Government is investing over $22 million across 18 projects to improve the resilience of roads in the West Coast that have been affected by recent extreme weather, Prime Minister Chris Hipkins confirmed today.  A dedicated Transport Resilience Fund has been established for early preventative works to protect the state ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Government invests in Greymouth’s future
    The Government has today confirmed a $2 million grant towards the regeneration of Greymouth’s CBD with construction of a new two-level commercial and public facility. “It will include a visitor facility centred around a new library. Additionally, it will include retail outlets on the ground floor, and both outdoor and ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Nanaia Mahuta to attend PIF Foreign Ministers’ Meeting
    Foreign Minister Nanaia Mahuta will attend the Pacific Islands Forum (PIF) Foreign Ministers’ Meeting, in Suva, Fiji alongside New Zealand’s regional counterparts. “Aotearoa New Zealand is deeply committed to working with our pacific whanau to strengthen our cooperation, and share ways to combat the challenges facing the Blue Pacific Continent,” ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • PREFU shows no recession, growing economy, more jobs and wages ahead of inflation
    Economy to grow 2.6 percent on average over forecast period Treasury not forecasting a recession Inflation to return to the 1-3 percent target band next year Wages set to grow 4.8 percent a year over forecast period Unemployment to peak below the long-term average Fiscal Rules met - Net debt ...
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